Semiconductor industry association to reduce 2006 and 2007 Forecast

American Semiconductor Industry Association (SIA) on the front of the semiconductor market poured cold water, it is only slightly improved forecast for 2005, but lower forecast for 2006 and 2007.

New forecast shows 2005 semiconductor sales will grow 6.8% to $227 billion 600 million, and in 2006 will grow 7.9%, reaching $245 billion 500 million, will grow 10.5% in 2007, reaching $271 billion 300 million, will grow 13.9% in 2008, to $309 billion 200 million.

In June, SIA's prediction is slightly different. The forecast shows that in 2005 sales will grow by 6%, to $226 billion, and in 2006 will grow 8.8%, reaching $246 billion, will grow 11% in 2007, reaching $273 billion, will grow 13.2% in 2008, to $309 billion.

SIA prediction and the new world semiconductor Statistical Organization (WSTS) report to the report, following a 6.6% growth in 2005, the global chip market will grow 8% in 2006, will grow 10.6% in 2007.

But there are a lot of companies do not agree with this view. For example, iSuppli believes that the semiconductor market in 2005 will grow by 2.4%, from $227 billion 200 million in 2004 to reach $232 billion 700 million. 2006 will grow 4.3% to $242 billion 800 million.

And Semico company is suddenly from pessimism to optimism, the recent increase in the semiconductor market in the next two years will be expected in 2005 is expected to increase by two percentage points, reaching 4%, and in 2006 is expected to increase from 8.1% to 18.2%.

SIA CEO George Scalise said, "IT products still dominate the market, consumer electronics products in the next few years will be the main driver of market growth".